TechFlow news, crypto KOL Loki posted a tweet analysis stating that bear markets are actually unsuitable for accumulating exchange platform tokens, similar to how one should not buy bank stocks just for dividends in the A-shares market. While platform tokens may seem to offer benefits such as profit buybacks, new token issuance, and rights-based dividends, they often result in earning minor returns while losing principal. Among former leading exchanges, many have already collapsed, such as Fcoin, FTX, and ZB. Even if an exchange doesn't collapse, its leading position may not be sustainable. The ideal time to accumulate platform tokens is at the beginning of a bull market—similar to accumulating brokerage stocks—because platform tokens benefit from explosive growth in new assets. Conversely, platform tokens should be sold at the beginning of a bear market.
Another point to note is not to blindly trust P/E ratio analysis. In the second half of 2020, the P/E ratios of the three major exchanges (counting token burns as profit) were: HT at 3–5x, BNB around 15x, and OKB over 25x. Yet in reality, BNB performed best, followed by OKB, with HT performing the worst. Relying solely on P/E ratios applies a single-stage dividend growth model and ignores the impact of growth rates. Particularly, Binance Labs' strategic investments during bear markets give Binance a growth rate above the market average.
